Sanstar IPO gets 83 times subscription on Day 3 of share sale

The initial public offer of the plant-based speciality products company Sanstar Ltd received 82.99 times subscription on the closing day of the share sale on Tuesday amid massive participation from institutional buyers.

The ₹510 crore initial share sale received bids for 3,11,95,03,800 shares against 3,75,90,000 shares on offer, as per NSE data.

The portion for Qualified Institutional Buyers (QIBs) got subscribed 145.68 times, while the quota for non-institutional investors fetched 136.50 times subscription.

The category of Retail Individual Investors (RIIs) received 24.23 times a subscription.

The IPO has a fresh issue of up to 4.18 crore equity shares and an offer for sale of up to 1.19 crore equity shares.

The IPO has a price range of ₹90-95 per share.

On Thursday, Sanstar Ltd. said it has collected ₹153 crore from anchor investors.

Proceeds from the fresh issue to the tune of ₹181.55 crore will be utilised to fund the capital expenditure requirement for the expansion of the company's Dhule facility, ₹100 crore for debt payment, and a portion will also be used for general corporate purposes.

Sanstar is one of the major manufacturers of plant-based speciality products and ingredient solutions in the country.

The company's specialty products and ingredients add taste, texture, nutrients, and increased functionality to foods as ingredients, thickening agents, stabilisers and sweeteners, among others.

It has an installed capacity of 1,100 tonnes per day through its two manufacturing facilities at Dhule in Maharashtra and Kutch in Gujarat.

The company exports its products to 49 countries across Asia, Africa, the Middle East, the Americas, Europe, and Oceania and has established its presence across India, distributing its products to 22 states.

Pantomath Capital Advisors is the book-running lead manager for the offer. The equity shares of the company are proposed to be listed on the BSE and the NSE.